3 Differences Between a Will and a Transfer-On-Death Deed in Texas

 Posted on September 23, 2024 in Estate Planning

When someone starts thinking about what they will leave behind when they pass away, it can be difficult for two reasons. First, it is emotionally challenging to plan for our own death, something most of us would prefer not to focus on. Second, there are so many options available that it can be confusing to sort through it all. This article will compare two estate planning options - wills and transfer-on-death deeds. Both are official ways to leave things behind for loved ones after your death, but they have different characteristics that make them preferable for different circumstances. Contact a knowledgeable Flower Mound, TX estate planning attorney to discuss which option makes the most sense for you.

How to Decide Between a Will and a Transfer-On-Death Deed

Transfer-on-death (TOD) deeds and wills are two options commonly used for bequeathing your assets to people you leave behind when you die. While they accomplish similar goals, there are some important differences that might make one method better suited to your needs:

• Time: When someone leaves behind a will, the instructions in it need to be approved by a probate court, which can cause delays. On the other hand, a TOD can transfer ownership to whoever you designate as a beneficiary automatically when you die. There is no need for any formal action, making it a quicker option.

• Scope: A will is a set of instructions for how your money, investments, and all other assets would be distributed and how any minor children you have should be cared for after your death. If you want, you can also include a care plan for your pets. On the other hand, a TOD can only include what Texas law considers "real property" - homes, buildings, land, timber, and mineral rights. Personal property, including jewelry, furniture, fine china, etc. cannot be included in a TOD. Additionally, a TOD in Texas cannot be used to distribute real property in another state.

• Cost: Many people appreciate the formality of a will and are comfortable with the understanding that the probate process will ensure their wishes are fulfilled. However, since a TOD does not require probate, the costs involved can be significantly lower.

Contact a Denton County, TX Estate Planning Attorney

If you are deliberating between leaving behind a will or a TOD, an experienced Flower Mound, TX estate planning lawyer can aid you with this decision. At Colbert Law Group PLLC, we have helped many clients understand the pros and cons of each and weigh those against their unique needs. Call us at 972-724-3338 to schedule a private consultation so you can begin planning for the future with all the information you need.